As far as the political and legal factors are worried, the entire film market is impacted by the risk of piracy which could potentially cause a negative influence on the total revenue of the film market. Having said that, copyright laws use defense to the film industry in regards to preventing piracy.
While the legal and political environment offers security to film makers, globalization and development of technological elements have actually increased legal challenges such as ease of piracy and violating copyright rights.
It ought to be kept in mind that movies belong to the entertainment industry while expenditure on any form of home entertainment is essentially an optional cost which is more or a high-end rather than a necessity. We look at the comparison of the GDP trend with the trend in demand for motion pictures, we can see that the two are not directly proportional suggesting that any modification in GDP growth does not necessarily bring about a change in this specific entertainment.
As far as the social-cultural factors are concerned, it needs to be noted that the 70% of IMAX audiences are between the ages of 19 and 56 which permits a great deal of diversity when it pertains to going with a specific segment. In addition with bulk of the audiences being college or university students with an average family income of $70,000, the purchasing power of the target audience shows possibilities of increasing viewership.
With factors such as 'moms and dads revealing an interest in their children's option of home entertainment' and 'higher buying power in families' due to both parents contributing towards the home earnings, we can see that the entertainment organisation has a great deal of capacity for industry players.
While technological factors have actually contributed towards decreasing the expense of entertainment with the intro of multimedia, truth based home entertainment, house theatres, cable television networks, the pressure on theatres has increased in term of making the theatre experience richer for customers in order to make it more appealing than seeing movies at home. In addition, while developments have contributed towards the hazard of 'piracy' they have actually also contributed towards ease of keeping and dispersing movies.